1. Field of the Invention
The present invention relates to a universal positive pay match, authentication, authorization clearing and settlement system to reduce check fraud and verify checks, other financial instruments and documents.
2. Description of Related Art
Check fraud and verification of checks presented to merchants and financial institutions have always been a problem for payers who write checks. Additionally, merchants and other payees are also concerned about check fraud, as well as banks and clearing houses. According to the Chairman of the Federal Reserve, Allan Greenspan, nearly 70 billion checks were written in 1999, with check fraud being approximately $15 billion dollars during that same year.
U.S. Pat. No. 4,109,238 issued to Creekmore, outlines the use of a check verification system for providing customer operated verification of checks at point of sale locations. The system enables a customer to verify several possible kinds of checking functions, including verification of payroll or government checks as well as certain types of personal checks for cash. The system utilizes a number of local point of use terminals which are operated by the customer and which communicate with a remotely located transaction processor, including a positive file of customers who are entitled to verify checks.
U.S. Pat. No. 5,801,366 issued to Funk et al., outlines the use of an automated check processing system which includes an input device receiving checking account information and a check amount of a check provided for payment in a transaction. A transaction database coupled to the input device then electronically receives and stores the checking account information and check amount, which are then downloaded to a power encoder. The power encoder receives checking account information and check amounts for transactions occurring over a predetermined transaction period and then matches the checks with the electronic checking account information and check amounts.
U.S. Pat. No. 5,677,955 issued to Doggett et al. outlines the use of an electronic instrument created in a computer-based method for effecting a transfer of funds from an account of a payor in a funds-holding institution to a payee. The electronic instrument includes an electronic signature of the payor, digital representations of payment instructions, the identity of the payor, the identity of the payee and the identity of the funds-holding institution. A digital representation of a verifiable certificate by the institution of the authenticity of the instrument of the instrument is appended to the instrument.
U.S. Pat. No. 6,036,344 issued to Goldenberg outlines the use of an apparatus and method for countering fraudulent check cashing schemes that includes a central processing center that is connected to a plurality of banks through secure communication channels. Each check drawn against the banks has information stored therein, with that information corresponding to a plurality of digits and characters for the central processing center. When a check is presented at a bank, the information on the check is sent through one of the secure communication channels to the central processing system, which determines whether or not the account has sufficient funds to allow the check to be drawn against the account.
World Pat. No. WO 97/36267 also granted to Funk, outlines the use of an automated positive check authorization system that includes an input device for receiving a check amount and checking account information pre-printed on a check drawing on a checking account presented in a transaction at the time of check presentment. The checking account information and check amount are electronically transmitted to a check verifier, which receives the check amount and checking account information from the input device and searches a checking account database for a current balance in the checking account.
This kind of xe2x80x9cbank specificxe2x80x9d positive pay check authorization system is known to those schooled in the related art, but is very limited in its application. Therefore, there is a need for a positive pay match, authentication, authorization, clearing and settlement system which could be universally applied in order to result in a more secure authorization system.
None of the above inventions and patents, taken either singly or in combination, is seen to describe the instant invention as claimed.
The invention is a Universal Positive Pay match, authentication, authorization, clearing and settlement system by Ramboze Inc., to reduce check fraud. The system includes several technologies for inputting check register information connectively from various users of the system, a database for storing the check register information and the check histories, software that searches for and captures check register information for compliance with escheat laws, software that automatically polls check register information from the customer or the customer""s bank, and software for conducting and transmitting a partial or full reconciliation of the check register information from the system to the customer.
Accordingly, it is a principal object of the invention to provide a universal positive pay match, authentication, authorization, clearing and settlement system that reduces check fraud and maintains check payment control.
It is another object of the invention to provide a universal positive pay match, authentication, authorization, clearing and settlement system that can interchangeably be used by customers, financial institutions, commercial retail entities, the Federal Reserve, check verification services, insurance companies, pharmaceutical companies and other entities.
It is a further object of the invention to provide a universal positive pay match, authentication, authorization, clearing and settlement system that also provides a positive or negative check history rating on a customer.
It is a further object of the invention to utilize a wide variety of technology to input data into the universal positive pay match, authentication, authorization, clearing and settlement system.
It is a further object of the invention to perform a point of sale, point of presentment and point of encashment check authorization.
It is a further object of the invention to utilize electronic checks with the universal positive pay match, authentication, clearing and settlement authorization system.
It is a further object of the invention to allow a paper check conversion to an electronic check or an electronic check conversion to a paper check on a magnetic ink character recognition laser printer utilizing the check registration information for the universal positive pay match, authentication, authorization, clearing and settlement system.
It is a further object of the invention to apply security detectable inks, tamper-proof foils and threads, as well as holograms to a financial instrument used in the universal positive pay match, authentication, authorization, clearing and settlement system to provide additional security against fraud.
It is a further object of the invention to provide new wireless devices, known as the cell wallet, the palm wallet, the e-wallet and the cam wallet, to be used with the universal positive pay match, authentication, authorization, clearing and settlement system.
It is a further object of the invention to utilize a wide variety of plastic card financial instruments such as credit cards, debit cards, stored value cards, payroll cards, cash cards and smart cards to input check registration information into the universal positive pay match, authentication, authorization, clearing and settlement system.
It is a further object of the invention to provide a service for bill presentment, bill payment, accounts payable and payroll using the universal positive pay match, authentication, authorization, clearing and settlement system.
It is a further object of the invention to utilize a check with a micro computer chip embedded within the paper surface of the check, to contain digitized signatures, security, GPS locate and check registration information.
It is a further object of the invention to reduce the amount of paper and plastic involved with conducting banking transactions.
It is a further object of the invention to provide a positive match of data exchange for insurance policies, medical information and pharmaceutical information.
It is an object of the invention to provide improved elements and arrangements thereof in an apparatus for the purposes described which is inexpensive, dependable and fully effective in accomplishing its intended purposes.
It is an object of the invention to provide the financial institution merchant and all parties to debit stall or stall debit on any and all debit card and check debit transactions.